The article discusses the potential sale of RE Colorado shares by Realtor Association shareholders to a private equity firm, marking a significant first in the MLS (Multiple Listing Service) industry, which traditionally hasn’t seen private equity investment. This move could catalyze a series of similar transactions if private equity discovers the profitable business models of MLSs. WAV Group, a consultancy specializing in real estate valuations and M&A, has noted increased outreach from MLS and brokerage clients seeking to understand the implications of such a sale. The piece delves into the structure and governance of MLSs, explaining how shares are managed and valued, and outlines how corporate governance impacts sale decisions. It also highlights the importance of historical data and customer retention in determining the value of an MLS. Additionally, there are concerns about the implications of the sale on RE Colorado’s future financial viability and the dynamism of local brokerages and agents in Colorado.

Real Estate, Private Equity, Technology,United States, North America